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HomeMy WebLinkAboutFCMeetingMinutes_02.07.02 FINANCE COMMITTEE MINUTES FEBRUARY 7,2002 ATTENDANCE: Members present: Michael Garron,Chairman;Bernice Fink,Vice Chairman,Keith Mitchell;Paula Porten;Paul Stewart; Jack Watkins. Also present: Mark Rees,Town Manager;Charles Benevento,Director of Finance and Administration; Susan Haltmaier, Selectman;Diane Huster, School Committee Member CALL TO ORDER: Michael Garron called the meeting to order at 7:15 p.m. APPROVAL OF MINUTES: Bernice Fink made a MOTION,seconded by Jack Watkins to approve the January 3,2002 minutes. Vote approved 6—0. NEW BUSINESS: Veteran's Transfer The Finance Committee reviewed Veterans' Services Director Ed Mitchell's request for a Reserve Fund transfer for an additional$34,500 to the Veterans Budget. The request is due to a projected caseload increase and the additional cost of the Group Medex Plan,which has caused a negative balance on the Veterans Benefits line item_ Although 75%will be refunded by the state,the Accounting Dept.will not cut any additional checks against his budget. The Finance Director informed the committee that Community Development does not have money in their budget to pay for the increase. The Finance Committee agreed to suspend the rules to wait one week before voting. Keith Mitchell made a MOTION,seconded by Jack Watkins to approve the$34,500 increase to the Veteran's budget. Vote approved 6--0. The Finance Director will write a letter to the Veteran's Director and put through the transfer. FY03 CIP Budget Town Manager,Mark Rees,gave an overview of the FY03 GIP Budget. He explained that he used the same method as last year,which is to determine how much money is available and go down the prioritization list until the money runs out. For major projects,he used another process to fit them into the net debt service,which is limited to 5%of net revenue. He explained the projected General Fund debt service through FY07: Net Revenue Net% FY03 $52,438,064 2.9% FY04 54,132,768 3.8% FY05 55,990,760 4.9% FY06 57,922,069 5.6% FY07 59,918,947 5.7% The Town Manager reviewed the General Fund Projects for FY03. He emphasized that the Town Hall Renovation Phase I cost is$2.5M over the original$1M,and does not include the next phase amount. The largest project is the construction of the new police station at a cost of$7,330,583. Bernice Fink said that she would like to see the useful life of the equipment added to the project list spreadsheet. Hiah School Bondina Issue Diane Huster voiced her concern over the Selectmen's decision to approve the high school bonding using Option A,which is the accelerated payment option,without first consulting with the School Department. She felt that Option D,to level fund the payments,would be less of an impact to the taxpayers. Susan Haltmaier also handed out an analysis of the net present value using a 5%and a 7%discount rate. Her preliminary results showed that it was more cost effective to level fund the payments. Michael Garron asked the Finance Director to have the Town's bond advisor provide present value tables. Finance Committee Budget Calendar The Finance Committee agreed to have the departments present their budgets on the following dates pending availability of the division heads. CIP Presentations February 14—CIP Presentations Stevens Estate(including Operating Budget) Operating Budget Presentations_ February 21 -Finance and Administration—Joyce Bradshaw and Garrett Boles to attend February 28-DPW March 7-School March 14-Police and Fire March 21 -Community Development and Services Heidi Griffin to decide which department heads to attend March 28--Public Hearing April 4 to April 12—Vote amendments,review drafts and writings,final review and final draft Finance Committee Liaisons Finance and Administration Keith Mitchell Community Development and Services—Paula Porten D.P.W.-Michael Garron Police and Fire—Jack Wakins School—Bernice Fink Paul Stewart to assist Joyce Bradshaw with Town Warrant Fiscal Im act of Proiposed Boxford Line Develo went Bernice Fink said she is too busy to study the issue and do an analysis and needs help. She also said that Heidi Griffin is waiting for an answer from the Finance Committee. Michael Garron said he would speak to the town moderator to find another Finance Committee member who can then be assigned to help with the analysis. The committee agreed to hold voting on their recommendation. OLD BUSINESS Other Michael Garron said that his interpretation of the letter that he received from the State regarding the $200.OK that the School Dept.received was that the money would be added to the base and that our Revenue should increase. Dr.Allen's letter indicated that it was a one-time grant award and is not to be added to the base. ADJOURNMENT There being no further business,Jack Watkins made a MOTION,seconded by Keith Mitchell,to adjourn the meeting at 10:25 p.m.—Vote approved 5--0.(Paula Porten left the meeting prior to adjournment.)